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PROVISIONAL URBAN COUNCIL
185
'In view of the present economic downturn and business difficulties in Hong Kong, RESOLVED that the Council reduce the rental of refreshment kiosks, fast food kiosks, restaurants, refreshment bars and book/gift shops etc, at the Council's recreation sites, cultural and entertainment venues and museums by 30% for one year in order to alleviate the burden of the contractors.'
He said (in Cantonese):—Mr. Chairman, I hereby move a motion as follows:
'In view of the present economic downturn and business difficulties in Hong Kong, RESOLVED that the Council reduce the rental of refreshment kiosks, fast food kiosks, restaurants, refreshment bars and book/gift shops etc, at the Council's recreation sites, cultural and entertainment venues and museums by 30% for one year in order to alleviate the burden of the contractors.
First of all, I would like to thank the Director of Urban Services for her letter explaining the impact of the above motion. My response to the letter is as follows.
Earlier, that is, on 21 July, under a motion moved by Ms. Ada WONG of the Liberal Party and seconded by me with the full support of Mr. Tommy CHEUNG and Mr. Chan Noi-yue, the Council endorsed the fee reduction of various licences by 30% for one year to help the people alleviate their hardship and tide over the difficult times with them. The reduction of licence fees has benefited 25,000 traders and food premises, and the revenue foregone is $53,700,000.
Furthermore, the Council reduced the rental of market stalls by 30% with effect from June this year for one year for the same reason and purpose stated above.
At present there are altogether 98 refreshment kiosks, fast food kiosks, restaurants, refreshment bars and book/gift shops in the Council's recreational, cultural and entertainment venues, museums and offices leased to non-profit-making organizations. Apart from 10 non-profit-making organizations, 72 of the shops are required to pay only the fixed rent (that is, the basic rent) while 12 are required to pay the 'fixed rent' plus a percentage of the turnover or profit. Only three of the food premises in the Cornwall Street Park, the Kowloon Park, the Queen Elizabeth Stadium and the Hong Kong Coliseum have their rent pegged to the turnover.
The proposed 30% reduction will not apply to the percentage of turnover or profit and will apply only to the basic rent. As for shops with their rent pegged to the turnover, since their rent is already adjusted in real terms by the turnover-led factor, I recommend that they be excluded from the proposed 30% reduction. This happens to be in line with the recommendation of the Director of Urban Services.
Page 188 of 606
Page 188 of 606
Page 188 of 606